Indian Overseas Bank in order to support women entrepreneurship in the country has signed an agreement with Groom India Salon & Spa, which owns the salon chain brand Naturals. As per the agreement the bank will finance up to Rs 25 crore under the ‘Credit Guarantee Fund Trust for Micro and Small Enterprises’ scheme to roughly 100 women franchisees identified by Groom India. Each salon will cost anywhere between Rs 25 lakh to Rs 50 lakh as per the infrastructure and location of the outlet. Out of the total investment 70% will be funded by the bank and the remaining 30% would bring by the franchisee.
The Chennai-headquartered bank is planning to raise Rs 413 crore, through issuance of 41.3 crore shares of the face value of Rs 10 each, either through fresh equity, rights issue, preference shares or qualified institutional placement. With this initiative, the bank plans to mop up funds before the end of the current financial year to comply with the capital adequacy norms, considering its business growth.
